Sent: Tuesday, April 02, 2002 9:36 AM
Subject: The CUE Contract

Dear Ms. Robinson:

The email message that you sent to Chancellor Vanderhoef, with a copy to President Atkinson, on February 27th, has been forwarded to me since labor relations and compensation fall under Human Resources and Benefits. I am pleased to have the opportunity to respond to your concerns and regret the delay in doing so.

I first want to clarify that the University is offering clerical employees a total compensation increase of 5 percent, comprised of the same general 2 percent salary increase that other staff employees are receiving plus an additional 3 percent in deferred compensation in a special retirement account. Additionally, we hope to reach a multi-year contract with CUE (the union representing clerical employees) that includes some form of merit increase in the next fiscal year. This will, however, depend largely on the final 2002-03 budget. UC also continues to offer its employees a generous benefits program, as outlined in the attached Fact Sheet. These benefits include, for example, high-quality health care coverage at reasonable premiums; one option provides for employee and family coverage with premiums fully paid by UC. While we recognize that the special deferred compensation and other benefits do not represent immediate cash available to employees, their value should nonetheless be considered as part of the total compensation package that employees receive.

UC has recently made progress in making compensation for clerical employees more competitive. In 2000, their salaries lagged the labor market on a systemwide basis by approximately 18.8 percent. Since then, due to a combination of the University's actions and various market factors, our data indicate that current clerical salaries are approximately 8-10 percent behind the market and the total compensation is near the market when we factor-in benefits. It is important to note that salary for many UC employee groups--not just clericals--lag the market. For example, faculty salaries systemwide currently lag by approximately 7 percent.

I want to assure you that the University is concerned about salary issues for all of our employees, and we take whatever actions we can to address these issues within our budgetary constraints. Compensation for faculty and staff remains one of our top budgetary priorities as we work with the governor and the Legislature to maintain the University's quality during difficult economic times. Each employee is an important member of the University community. Your many contributions are essential to the University's overall mission and its ability to remain the premiere public institution of higher education in the country.

I appreciate your taking the time to write and share your views, and I hope this information is helpful. As always, we are grateful for your continued dedication and service to the University of California.

Sincerely,